2012 augurs good opening with first signs of revival in Middle Eastern and North African market after a long hiatus. Given the extremely lackluster tenor of the gulf markets for over a year any flutter seems strange but pleasant.
Cost led rally seems to have insinuated buying in the region. Scrap being in shortage during winter has led to cost escalation with the Turkish mills. Even though inventory levels remain scanty the spark has been provided by the incremental cost.
It is learnt that improved booking levels touching almost USD 650 per tonne CNF has cast a spell on the Black Sea mills as well. Even though the latest offers of USD 650 per tonne from CIS mill have fallen flat an increment of USD 20 per tonne is there to stay.
In finished products viz., rebars the current offer levels from Turkey are at a premium of USD 30 per tonne to USD 40 per tonne touching USD 680-685 per tonne, CNF. Transactions remaining elusive bookings are expected at least USD 20 per tonne more. Iraq and Saudi Arabia are at the vanguard of consumption with abundance of construction projects. Iran continues sulking with the double whammy of financial embargo and nearly 20% depreciation of currency making imports onerous.
Taking cue from rising tide the domestic mills have also jacked prices for January by about AED 55 per tonne to AED 75 per tonne. Prices have stabilized at hiked levels with inventory replenishment long overdue.
Conversely the aroma seems to have missed the flat market. Indian mills are reported to be active with HRC offers at USD 655 per tonne to USD 658 per tonne CNF. Mobarakeh has last booked at USD 640 per tonne to USD 650 per tonne FOB (+20 per tonne freight).
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